In the networked economy, financial services ecosystems are intertwined across all touchpoints – across hardware, software, and mobile devices – with a digital focus (and sometimes only digital).
To this end, as reported, square plans to expand its financial services offering to its customers to introduce checking and savings accounts for small and medium-sized businesses. It looks like it’s an offer to run Square more like a traditional bank.
According to reports, the plans are suggested by lines of code embedded in an update to the company’s app for Apple devices like the iPad and iPhone. For details via BloombergThe checking accounts are linked to company debit cards. The Code states that Square will be charging about half a percent of savings accounts at least this year, making that rate competitive with digital banks.
One way the company can offer these competitive rates is through Square Financial Services started in March. The industrial bank, which operates as an independently controlled subsidiary of Square, is headquartered in Utah. The stated goal then – and as it is now becoming a reality – is to offer business loans and deposits, initially attempting to subscribe and borrow the existing loan product (Square Capital).
Square capital
With a nod to Square Capital, management said in the last round of income Square Capital issued 136,000 loans totaling $ 923 million in the first quarter, an increase of 68 percent. During the call for profits, CEO Jack Dorsey commented, “We obviously have a lot of experience in lending … We see an incredible opportunity to lend to individuals. We’re currently experimenting with a small group of customers, in small amounts … If someone goes to a bank, they’re offered a minimum of $ 25,000 or $ 20,000, and … that’s way too much. It took them $ 5,000 to buy a new salon chair. So we really focus on … the real needs. “”
So Dorsey points out that the roadmap can be a straight line from company to individual. And it’s a sign of how a financial services ecosystem can be built around the (square) seller and the person who is used to using the Cash app (the revenue from the Capital and Cash app was in Reporting period to $ 558 million, an increase of 88 percent a year). more than years). Familiarity apparently leads to new use cases, and Square seems to be counting on it – literally.
Read more about Square:
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NEW PYMNTS DATA: STUDIENZAHLUNGEN IN CRYPTOCURRENCE – MAI 2021
About the study: U.S. consumers view cryptocurrency as more than just a store of value: A $ 46 million plan says they’ll use it to make payments for everything from financial services to groceries. In the Cryptocurrency Payments Report, PYMNTS surveyed 8,008 cryptocurrency users and non-users in the US to find out how they would like to use cryptocurrency for purchases, which cryptocurrency to use, and how merchants can influence the choice of merchants and consumers in spending.
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